The Trade Union Congress (TUC) has issued a two-week ultimatum to the Federal Government to withdraw the proposed five per cent tax on petroleum products or face a nationwide strike.
The warning came amid rising public anxiety following reports that the levy could take effect in January 2026. The speculation triggered concerns in a country where fuel price adjustments often spark unrest.
However, President Bola Tinubu’s tax reform committee dismissed the rumour, clarifying that no start date has been fixed and only the Minister of Finance can determine whether the measure will be implemented.
The planned tax, part of government’s broader fiscal reforms to boost revenue, would apply to fossil fuels such as petrol and diesel but exclude cleaner alternatives like cooking gas, compressed natural gas, kerosene and renewables.
TUC President-General Festus Osifo and Secretary-General N.A. Toro condemned the proposal, describing it as “economic wickedness” that would worsen hardship for Nigerians already battling the impact of fuel subsidy removal, soaring inflation and naira depreciation.
> “The government cannot continue to use Nigerians as sacrificial lambs for its economic experiments. Instead of providing relief and creating jobs, it is choosing to squeeze citizens dry. This is unacceptable,” the union leaders said.
The union disclosed that it has begun mobilising its affiliates, state councils and allied organisations, including civil society groups, professional associations, student unions, market leaders and faith-based bodies, for “total nationwide resistance” should the government proceed with the levy.
"Enough is enough. Nigerians deserve economic justice, not endless punishment,” the TUC warned, insisting that strike action remains on the table if Abuja ignores its warning.
Although the tax provision is not new—having been introduced under the Federal Roads Maintenance Agency (FERMA) Act of 2002 and amended in 2007 to fund federal and state road maintenance agencies, its implementation has remained dormant.
The Organised Private Sector (OPS) has also strongly opposed the proposed surcharge, arguing that it would trigger another round of inflation and further erode purchasing power.
President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, warned that the tax, if imposed at the point of sale of petrol and diesel, would ultimately be borne by consumers and worsen the economic strain.
“If the tax is added to the pump price, it means the burden falls on the consumer. Consumption of these products is already declining because people use their cars minimally. Adding this levy will further reduce demand and pile pressure on the public transportation system,” Idahosa said.
With inflation at record levels and transportation costs already high, analysts fear the proposed levy could ignite fresh unrest across the country.
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